Pronghorn Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available fr the company's inventory records as of December 31, 2025. Item A B C D E Quantity Unit Cost (a) 1,600 1,300 1,500 1,500 1,900 $9.00 9.84 6.72 4.56 7.68 Replacement Cost/Unit $10.08 9.48 6.48 5.04 7.56 Estimated Selling Completion & Disposal Price/Unit Cost/Unit $12.60 11.28 8.64 7.56 8.04 $1.80 1.08 1.38 0.96 0.84 Normal Profit Margin/Unit $2.16 1.44 0.72 1.80 1.20 Greg Forda is an accounting clerk in the accounting department of Pronghorn Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, ar he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.)
Pronghorn Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available fr the company's inventory records as of December 31, 2025. Item A B C D E Quantity Unit Cost (a) 1,600 1,300 1,500 1,500 1,900 $9.00 9.84 6.72 4.56 7.68 Replacement Cost/Unit $10.08 9.48 6.48 5.04 7.56 Estimated Selling Completion & Disposal Price/Unit Cost/Unit $12.60 11.28 8.64 7.56 8.04 $1.80 1.08 1.38 0.96 0.84 Normal Profit Margin/Unit $2.16 1.44 0.72 1.80 1.20 Greg Forda is an accounting clerk in the accounting department of Pronghorn Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, ar he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant. Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Calculate the lower-of-cost-or-market using the individual-item approach for:
Item A, Item B, Item C, Item D, Item E
Transcribed Image Text:Pronghorn Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from
the company's inventory records as of December 31, 2025.
Item
A
C
BUD
E
Quantity
(a)
1,600
1,300
1,500
1,500
1,900
Unit Cost
$9.00
9.84
6.72
4.56
7.68
Replacement
Cost/Unit
$10.08
9.48
6.48
10
5.04
7.56
Estimated Selling
Price/Unit
$12.60
O Search
11.28
8.64
7.56
8.04
Completion & Disposal
Cost/Unit
$1.80
CO
1.08
DELL
1.38
0.96
0.84
Greg Forda is an accounting clerk in the accounting department of Pronghorn Co., and he cannot understand why the market value
keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and
he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an
accountant.
Normal Profit
Margin/Unit
$2.16
1.44
Calculate the lower-of-cost-or-market using the individual-item approach. (Round answers to 2 decimal places, e.g. 78.73.)
C
0.72
1.80
1.20
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Transcribed Image Text:how the journal entry he will need to make in order to write down the ending inventory from cost to market. (List all debit ent
efore credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is
equired, select "No entry" for the account titles and enter O for the amounts.)
Account Titles and Explanation
Cost of Goods sold Method:
Loss method:
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List of Accounts
Debit
Credit
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